City Corporation comments on clearing announcement

The European Securities and Markets Authority has announced that in the event of a no-deal Brexit, three central counterparties established in the United Kingdom – LCH Limited, ICE Clear Europe Limited and LME Clear Limited – will be recognised to provide their services in the European Union.

Catherine McGuinness, Policy Chair at the City of London Corporation, said:

“This is good news for the short term, as it provides certainty in the event of a no-deal Brexit.

“We now need to see further progress on the other remaining cliff-edge issues, most notably cross-border data flows – an issue that the International Regulatory Strategy Group recently wrote to the European Commission and European Data Protection Board about – and contract continuity.

“This is increasingly urgent as our political uncertainty continues and the prospect of a no-deal exit grows.

“We would still greatly prefer to see an organised exit with a transition period, and urge Parliament to make progress on this. A crash out could be very damaging for ordinary people and businesses on both sides of the Channel. It also would not make the process of negotiating our long-term relationship with the EU any easier.”

Notes to editors

The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK. www.cityoflondon.gov.uk